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EMCOR Group, Inc. (NYSE:EME)
Beneish M-Score
-2.60 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

EMCOR Group, Inc. has a M-score of -2.60 suggests that the company is not a manipulator.

EME' s 10-Year Beneish M-Score Range
Min: -3.11   Max: -0.93
Current: -2.6

-3.11
-0.93

During the past 13 years, the highest Beneish M-Score of EMCOR Group, Inc. was -0.93. The lowest was -3.11. And the median was -2.47.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of EMCOR Group, Inc. for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9562+0.528 * 0.909+0.404 * 0.9998+0.892 * 1.0033+0.115 * 0.8867
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0694+4.679 * -0.0055-0.327 * 0.9446
=-2.60

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,234 Mil.
Revenue was 1566.711 + 1558.055 + 1599.385 + 1662.937 = $6,387 Mil.
Gross Profit was 222.229 + 219.635 + 215.211 + 234.075 = $891 Mil.
Total Current Assets was $1,927 Mil.
Total Assets was $3,435 Mil.
Property, Plant and Equipment(Net PPE) was $122 Mil.
Depreciation, Depletion and Amortization(DDA) was $76 Mil.
Selling, General & Admin. Expense(SGA) was $620 Mil.
Total Current Liabilities was $1,247 Mil.
Long-Term Debt was $321 Mil.
Net Income was 45.024 + 39.913 + 41.261 + 45.921 = $172 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 69.354 + 63.956 + -24.316 + 82.022 = $191 Mil.
Accounts Receivable was $1,286 Mil.
Revenue was 1629.067 + 1556.753 + 1568.401 + 1611.881 = $6,366 Mil.
Gross Profit was 206.31 + 181.535 + 191.138 + 228.449 = $807 Mil.
Total Current Assets was $1,968 Mil.
Total Assets was $3,507 Mil.
Property, Plant and Equipment(Net PPE) was $123 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General & Admin. Expense(SGA) was $577 Mil.
Total Current Liabilities was $1,292 Mil.
Long-Term Debt was $403 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1233.916 / 6387.088) / (1286.237 / 6366.102)
=0.19318913 / 0.20204467
=0.9562

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(219.635 / 6366.102) / (222.229 / 6387.088)
=0.12683303 / 0.13952368
=0.909

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1926.67 + 122.24) / 3434.667) / (1 - (1968.486 + 123.138) / 3506.759)
=0.40346182 / 0.40354498
=0.9998

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=6387.088 / 6366.102
=1.0033

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(63.277 / (63.277 + 123.138)) / (75.822 / (75.822 + 122.24))
=0.33944157 / 0.38281952
=0.8867

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(619.58 / 6387.088) / (577.441 / 6366.102)
=0.09700508 / 0.09070558
=1.0694

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((321.222 + 1247.13) / 3434.667) / ((403.195 + 1292.016) / 3506.759)
=0.45662418 / 0.48341246
=0.9446

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(172.119 - 0 - 191.016) / 3434.667
=-0.0055

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

EMCOR Group, Inc. has a M-score of -2.60 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

EMCOR Group, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.01590.98171.19551.00140.77150.92951.11790.99340.90991.0265
GMI 1.13030.88790.93760.95350.90740.87891.05831.07461.02911.0028
AQI 0.97591.04250.92891.65781.00951.02180.81451.29890.94051.3385
SGI 1.0470.9931.0651.18051.14480.81760.92311.09611.13061.0111
DEPI 0.88650.97011.13910.92870.92711.00631.03380.92821.00780.9724
SGAI 0.87221.05131.00910.95041.0121.16870.96910.94950.94951.0509
LVGI 0.97470.91920.98411.04510.9390.87641.16070.8520.94681.0112
TATA -0.0143-0.0411-0.0586-0.0815-0.0502-0.0665-0.0592-0.0062-0.0122-0.0076
M-score -2.41-2.72-2.56-2.47-2.83-3.06-2.80-2.22-2.49-2.36

EMCOR Group, Inc. Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.88590.99050.92590.99281.04630.99421.02650.98750.91550.9562
GMI 1.06331.04681.0271.00311.00010.99891.00280.98670.93440.909
AQI 0.94890.92560.94050.94370.92661.29551.33851.32391.36420.9998
SGI 1.14651.12651.1111.07371.0351.01811.01111.01121.01671.0033
DEPI 0.91851.00321.00780.96810.98851.00070.97240.94550.91560.8867
SGAI 0.95420.95260.94470.95770.98421.02261.05091.05461.0661.0694
LVGI 0.95570.98030.94680.93620.96771.03041.01121.02020.98060.9446
TATA 0.00180.0013-0.01220.009-0.0021-0.0246-0.0076-0.0252-0.0259-0.0055
M-score -2.42-2.36-2.49-2.38-2.43-2.48-2.36-2.50-2.57-2.60
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